LOS ANGELES (Reuters) - Soaring energy costs and increased
concern about the environment are spurring builders to step up
building homes that use less energy and water.

More than 30 affordable homes being built this week during
a Habitat for Humanity project in Los Angeles include materials
designed to reduce energy costs and save the new homeowners
money.

"Green building certainly is becoming more mainstream
within the affordable housing community," said Ted Bardacke,
senior program associate with Global Green USA, an
environmental group that works with housing developers.

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Homes being constructed during the weeklong Habitat
project, an annual event hosted by former President Jimmy
Carter to build homes for lower-income families, include solar
panels on the roof that generate energy, double-pane windows
and energy-saving lights and ceiling fans.

This year, the Carter project is seeking LEED (Leadership
in Energy and Environmental Design) certification -- a U.S.
standard that identifies buildings that are environmentally
responsible and have lower operating costs.

"Energy over time is only going to get more expensive,"
Bardacke said. "In serving low-income families, we have to
recognize that a truly affordable house is not just a house
that's affordable to buy, but is more affordable to operate."

Appliance maker Whirlpool Corp is donating water- and
energy-saving washing machines and refrigerators to the Habitat
homes, while Dow Chemical Co provided exterior housewraps and
insulation to minimize air leakage and control moisture.

To promote construction of energy-saving buildings, Dow
said it is launching products including an insulated sheathing
made with a high percentage of recycled material.

"We're constantly looking to innovate into that (green
building) space, said Scott Young, global portfolio director of
energy efficiency with Dow Chemical. "We're looking to see if
we can continue to drive down the cost of construction as well
as the overall utility costs for homeowners."

The National Association of Home Builders said on its Web
site that by the end of this year, more than half its members,
who build more than 80 percent of U.S. homes, will be using
so-called green practices.

Lamar Cheatham, president of Ameristyle Construction in
Marietta, Georgia, said his company has been including water-
and energy-saving features in the higher-end homes it builds
for years.

"Everybody is more concerned about (energy efficiency)
especially with the rising cost of fuel," Cheatham said. "Now
water is starting to be a big issue," with concerns about
drought in the U.S. South.

Cheatham said his company's homes feature more efficient
heating and air systems, extra insulation in the ceiling and
other areas where air can be lost. Toilets with larger drainage
throats save water by reducing the possibility of stopping-up,
which in turn can cut down on flushing, he said.

Equipping a home with more energy-saving products can drive
up costs, Cheatham said. But, he added, "With the way that
energy prices are going right now, it's probably worth it."